Digital Asset and other market participants have completed the Canton Network pilot, a first-of-its-kind program demonstrating the interoperability of twenty-two independent distributed ledger applications (dApps) in the capital markets space. The execution of over 350 simulated transactions proved how a network of interoperable applications can connect to enable secure, atomic transactions across multiple parts of the capital markets value chain. It also demonstrated the potential benefits of using such a network to reduce counterparty and settlement risk, optimize capital, and enable intraday margin cycles.
The pilot program provided participants with distributed ledger applications for asset tokenisation, fund registry, digital cash, repo, securities lending, and margin management transactions – all with the ability to interoperate via the Canton Network TestNet. The pilot brought together firms from every side of the market: with 15 asset managers, 13 banks, four custodians, three exchanges, and one financial market infrastructure provider participating in the simulated transactions and/or demonstrations. Over a four-day period, participants were invited to try 22 dApps comprising five fund registries, five cash registries, three bond registries, three trading, four margin, and two financing apps, to exchange tokenised securities, money market funds, and deposits across applications. The pilot showed the potential of the Canton Network to reduce costs, risks, and inefficiencies, while striving to meet regulatory requirements for the issuance, transfer, and settlement of tokenised traditional assets. Digital Asset provided the technology and guidance to support the pilot and is one of the technology and infrastructure providers for the Canton Network.